Govt not desperate for loans, Adviser Salehuddin says after meeting WB delegation

The interim government is not desperate for loans from international donor agencies by accepting all their conditions, as Bangladesh's economy is currently performing well, Finance Adviser Salehuddin Ahmed said today (9 February).

"The country's economy is doing well right now. The state of financial accounts and current account balance are good. So, the government is not desperate for loans from donor agencies by accepting all conditions," he said.

The adviser made the remarks while briefing journalists after a meeting with Martin Raiser, vice-president for the South Asia Region of the World Bank, one of the top development partners and lenders of Bangladesh, at the secretariat in Dhaka.

Raiser is currently visiting Dhaka on a four-day visit. He arrived in the capital on Saturday. He is expected to hold several other meetings with other top officials of the interim government.

Meanwhile, responding to a question from a journalist at the press briefing, Adviser Salehuddin also said he has not been informed of any decision of the International Monetary Fund (IMF) about delaying the timing of releasing its next instalment of loans to Bangladesh.

"A meeting with the IMF is scheduled for the upcoming March. We hope the IMF is on track," he said.

When asked about the issue discussed in the meeting with Martin Raiser and the World Bank delegation, the adviser said, "The government will hold a meeting with the World Bank next June. They had some priorities, which Bangladesh has fulfilled."

In particular, he said the government has separated the tax policy and tax administration of the NBR, collected more revenue, and reduced tax exemptions.

During the meeting with Martin Raiser, they also discussed several aspects of the upcoming budget, a finance act, and a finance bill.

Meanwhile, addressing the journalist on the occasion, Martin Raiser said the meeting discussed several issues, including the progress of reforms in the sectors of tax administration, government procurement activities, access to information, and independence of the Bangladesh Bureau of Statistics.

"In particular, there was discussion on increasing transparency and ensuring accountability. People want to see the government doing all these things," he said.

"Discussion took place about separating the tax policy and tax administration of the NBR. The adviser told me that they are working on this. The World Bank is hoping to see visible progress on this in a few weeks or months. However, we also understand that there are some internal processes within the government," said the World Bank official.

He said the World Bank has called for introducing a system where any new tax expenditure or any new tax system would require legal approval through the budget.

"You [journalists] are certainly aware of the macroeconomic situation in Bangladesh. I don't think it needs to be said out loud. Of course, there are many challenges. But Bangladesh also has many possibilities. We hope the government will take the initiative to realise these possibilities," he added.